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EIA Report on Hurricane Impacts on U.S. Energy 


 As of Monday, September 1, 4:00 pm    See current    


U.S. Oil and Natural Gas Market Impacts


Prices
NYMEX Futures Prices
(for October delivery)
(2pm)
9/1/2008
8/29/2008
change
Week Ago
8/25/2008
Year Ago
8/31/2007
  WTI Crude Oil ($/Bbl)
111.16
115.46
-4.30
115.11
73.98
  Gasoline RBOB* (c/gal)
275.10
285.42
-10.32
280.69
196.45
  Heating Oil (c/gal)
309.24
319.19
-9.95
317.90
205.74
  Natural Gas ($/MMBtu)
7.98
8.36
-0.38
7.94
6.46
  OPEC Basket ($Bbl)
NA
111.23
NA
110.61
69.60
*RBOB = Reformulated Blendstock for Oxygenate Blending (RBOB), the base gasoline that needs to be blended with some type of oxygenate, now usually ethanol, to be turned into finished reformulated gasoline (RFG). Ethanol is not blended into the gasoline mixture until just before the gasoline is shipped to the retail stations.


Petroleum
As of 12:30 pm EDT (11:30 am CDT), August 31, the Minerals Management Service was reporting that about 1.25 million barrels per day (or well over 90 percent) of the federal portion of the Gulf of Mexico’s crude oil production was shut-in.  As of 10:00 am EDT (9:00 am CDT), August 31, the Department of Energy was reporting that 12 refineries in the Gulf of Mexico were shutdown, representing 2.1 million barrels per day of capacity, while another 10 refineries had reduced their crude oil throughput.  The 12 refineries that were shut down represent at least 700,000 barrels per day of gasoline output and at least 600,000 barrels per day of distillate fuel output, based on recent historical data.

However, despite the shut-in of crude oil production and refinery outages, futures prices on the New York Mercantile Exchange (NYMEX) were down sharply as of 2:00 pm EDT, with crude oil for October delivery down over $4 per barrel, and gasoline (RBOB) and heating oil down about 10 cents per gallon each.  Market expectations that shut-in crude oil production and refinery outages were going to be temporary is pushing prices down, removing any pre-hurricane price increases.  Of course, as yet, no assessments of damage to infrastructure have taken place.


Natural Gas
As of 12:30 pm EDT (11:30 am CDT), August 31, the Minerals Management Service was reporting that nearly 6.1 billion cubic feet per day (or about 80 percent) of the federal portion of the Gulf of Mexico’s natural gas production was shut-in.  As of 10:00 am EDT (9:00 am CDT), August 31, the Department of Energy was reporting that 19 of the 22 major natural gas pipelines in the Gulf of Mexico have declared force majeure, effectively shutting in all operations along their systems in the Gulf of Mexico.  Many of the natural gas processing plants along the path of the storm have shut down operations to allow workers to evacuate the area.



Also see:
Hurricane Situation Report from DOE's Office of Electricity Delivery & Energy Reliability
STEO Hurricane Analysis (pdf)

 

 

Hurricane Gustavís Projected Path
as of 1300 EDT, September 1, 2008
maps courtesy of iMapData and Pennwell

Gulf of Mexico Oil & Natural Gas Facts
Energy Information Administration
Gulf of Mexico
Total U.S.
% from
Gulf of Mexico
Oil (million barrels per day)
  Federal Offshore Crude Oil Production (4/08)
1.35
5.16
26.15%
  Total Gulf Coast Region Refinery Capacity (as of 1/1/08) 
7.41
17.59
42.12%
Natural Gas (billion cubic feet per day as of 2007)
  Federal Offshore Marketed Production
7.67
NA
NA
  State Offshore Marketed Production
0.67
NA
NA
  Total
8.33
54.7
15.22%

State Energy Profiles
Louisiana
Mississippi
Texas



Previous EIA Hurricane Reports